Property Tax in the Dominican Republic: Everything You Need to Know in 2025
Owning property in the Dominican Republic has many advantages—stunning beaches, a tropical lifestyle, and great investment potential. However, it’s essential to understand the country’s real estate tax obligations, particularly the Impuesto al Patrimonio Inmobiliario (IPI) or Real Estate Property Tax.
This guide breaks down who needs to pay, how it’s calculated, and important deadlines so you can stay compliant and avoid surprises.
Who Needs to Pay the IPI?
✅ Individuals
- If your total real estate assets exceed RD$10,190,833.00, you must pay IPI.
- Properties below this threshold are exempt.
✅ Trusts (Fideicomisos)
- Trusts are taxed on the full value of their real estate assets, with no exemption threshold.
How Much is the IPI?
| Owner Type | Tax Rate | Exemption |
|---|---|---|
| Individuals | 1% | Applied to amounts exceeding RD$10,190,833.00 |
| Trusts | 1% | No exemption |
Example Calculation for Individuals
If your total property value is RD$12,000,000.00, your taxable amount is:
👉 RD$12,000,000.00 – RD$10,190,833.00 = RD$1,809,167.00
👉 IPI Tax (1%) = RD$18,091.67 per year
📅 Important Deadlines
IPI is paid in two installments per year:
✔ March 11 – First installment due
✔ September 11 – Second installment due
💡 Late payments result in penalties and interest! Be sure to pay on time to avoid extra charges.
What Properties Are Subject to IPI?
✔ Residential properties
✔ Urban land plots
✔ Commercial, industrial, and professional-use properties
🚫 Exemptions from IPI
You may be exempt from paying IPI if:
1️⃣ You are a Senior Citizen (65+)
✔ If your property is your only real estate asset, you qualify for an exemption.
2️⃣ You are a Foreign Pensioner or Rentier
✔ If you receive income or a pension from foreign sources, you can get up to 50% exemption.
How to Stay Compliant
✔ File on time – Submit your tax return within the first 60 days of the year.
✔ Verify your property’s value – Keep an accurate assessment to avoid overpaying.
✔ Consult with experts – Tax professionals can help optimize your obligations.
Final Thoughts
Understanding IPI and how it applies to you is crucial for stress-free property ownership in the Dominican Republic. By staying informed and paying on time, you can enjoy your investment while avoiding unnecessary fines.
For official details, visit the DGII Website.
Get professional and accurate real estate advice. Always contact Broker Teresia Rosario at Sosua Cabarete Real Estate.